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Appeals court upholds Chicago ban on handguns
Law Center |
2009/06/03 09:22
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A federal appeals court has upheld ordinances barring the ownership of handguns in most cases in Chicago and suburban Oak Park.
The three-judge panel of the 7th U.S. Circuit Court of Appeals said Tuesday the Second Amendment guaranteeing the right to bear arms is not an adequate basis for lawsuits attacking local gun ordinances.
The National Rifle Associated argued the Second Amendment makes such ordinances unconstitutional. The Supreme Court has ruled in a District of Columbia case that the Second Amendment entitles people to keep handguns at home for self protection. The appeals court upheld dismissal of the lawsuit on the ground that the District of Columbia, unlike Chicago and Oak Park, is a federal jurisdiction. |
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Appeals court to hear appeal of Chrysler sale
Breaking Legal News |
2009/06/03 09:21
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A federal appeals court late Tuesday halted Chrysler's sale of the bulk of its assets to Italy's Fiat pending an appeal by a trio of Indiana state pension and construction funds.
The U.S. Court of Appeals for the Second Circuit will hear arguments in the case Friday afternoon in New York, according to the Indiana treasurer's office. Chrysler LLC had hoped to close the sale by the end of week, pending regulatory approval.
"We are pleased the Court of Appeals has agreed to hear our arguments," Indiana Treasurer Richard Mourdock said in a statement. "As we have stated from the beginning, Indiana retirees and Indiana taxpayers have suffered losses because of unprecedented and illegal acts of the federal government." Chrysler has maintained that the deal with Fiat Group SpA is its only hope of avoiding selling itself off piece by piece. If the sale doesn't close by June 15, Fiat has the option of pulling out of the deal. But the funds, which include the Indiana State Police Pension Fund, the Indiana Teacher's Retirement Fund, and the state's Major Moves Construction Fund, claimed that the deal as structured unfairly favors the interests of the company's unsecured stakeholders ahead of those of secured debtholders such as themselves. |
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Court upholds Navy cancellation of A-12 aircraft
Court Watch |
2009/06/03 04:21
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Boeing Co. and General Dynamics Corp. must pay the government $2.8 billion to settle a nearly two-decade dispute over the cancellation of a Navy contract for a stealth aircraft, the U.S. Court of Appeals for the Federal Circuit ruled Tuesday.
The Navy was justified in 1991 when it opted to terminate the $4 billion contract with McDonnell Douglas and General Dynamics to build a stealth aircraft, the court said.
Chicago-based Boeing, which acquired McDonnell Douglas in 1997, said it will appeal the ruling. The aircraft project was ended for being substantially over budget and behind schedule, according to the Justice Department. Both contractors were under a fixed-price contract to develop the A-12, a carrier-based attack aircraft. But because of serious technical difficulties, the Pentagon refused to approve additional funding, leading the Navy to cancel the program. In a 29-page opinion, the court explained the contractor's performance history showed that "the government was justifiably insecure about the contract's timely completion." Both contractors are now required to repay the government more than $1.35 billion, plus interest of $1.45 billion. Boeing had questioned whether the government owed money to both companies for work in progress when the contract was terminated. In a statement, Boeing called for an immediate appeal of the court's ruling. Falls Church, Va.-based General Dynamics issued a statement saying it disagrees with the ruling and continues to believe that the government's default termination was not justified. The company intends to seek a re-hearing in the Federal Circuit. |
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Reid praises Sotomayor as 'the whole package'
Breaking Legal News |
2009/06/02 09:50
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The Senate's top Democrat praised federal judge Sonia Sotomayor Tuesday as an extraordinarily well-qualified Supreme Court nominee whose background as an "underdog" appeals to Americans.
"We have the whole package here," said Sen. Harry Reid, seated beside Sotomayor before the two met in his Capitol office. He called her life story "compelling."
"America identifies with the underdog, and you've been an underdog many times in your life, but always the top dog," Reid, D-Nev., said of Sotomayor, the New York-born daughter of Puerto Rican parents who would be the first Hispanic and the third woman on the high court. Citing her Princeton and Yale education and long experience as a lawyer and judge, Reid said: "We could not have anyone better qualified." The visit was the start of a daylong schedule of meet-and-greets with Republicans and Democrats designed to let senators get to know President Barack Obama's nominee before they debate confirming her. Sotomayor was also meeting with the top Republican, Sen. Mitch McConnell of Kentucky, and leaders of the Judiciary Committee, Chairman Patrick J. Leahy, D-Vt., and senior GOP Sen. Jeff Sessions of Alabama. Republican senators have already begun to question remarks Sotomayor has made in the past about how her life experiences influence her judicial decisions. In turn, Democrats have defended her as a fair and unbiased judge, and all sides say they are eager to talk to her privately and question her in public hearings to come. |
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Bankruptcy Judge To Show Exacting Style in GM Reorganization
Bankruptcy |
2009/06/02 07:52
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U.S. Bankruptcy Judge Robert Gerber, who oversaw the biggest asset sale and the largest financing loan in court history, will show an exacting style of inquiry during General Motors Corp.’s reorganization, lawyers said.
A U.S. judge in New York’s Southern District since 2000, Gerber’s experience in handling Chapter 11 cases such as Adelphia Communications Corp. and Lyondell Chemical Co. may come in handy when trying to split up GM, the biggest U.S. manufacturer ever to file for protection from creditors.
“He is easily one of the best judges in the Southern District, extremely smart, considerate of counsel and careful,” said Mark R. Jacobs, a lawyer at Pryor Cashman in New York who dealt with Gerber in the Adelphia case. “He has a terrific judicial demeanor, and will give the GM case the attention it needs and deserves.”
Gerber, 62, will preside as creditors challenge the government’s allocation of $82.3 billion of GM assets and $172.8 billion of debt, owed to more than 100,000 creditors. At stake are the jobs, health and retirement benefits of about 90,000 U.S. workers and their families, the economic viability of their communities and about $50 billion in loans from U.S. taxpayers.
The carmaker plans to launch a new company in 60 to 90 days that will be 60 percent owned by taxpayers and that will sell Cadillacs, Chevrolets, Buicks and GMC trucks in the U.S. Gerber will supervise the sale or liquidation of unprofitable brands, such as Saturn and Hummer, and at least 11 unwanted factories. He will likely use the example of Chrysler LLC, which won court approval May 31 to sell most of its assets to a group led by Italy’s Fiat SpA, as a model during deliberations.
Gerber “may have to grapple with some thornier issues than have arisen in the Chrysler case, but he clearly has the intellectual firepower to deal with them,” Jacobs said. “Pretty lucky draw for GM and all of the other players.” Southern District bankruptcy judges are traditionally assigned cases randomly. |
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Bank of America wins in $1 billion-plus California lawsuit
Corporate Governance |
2009/06/02 05:50
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California's highest court on Monday ruled that Bank of America Corp need not pay a potential $1 billion or more to customers who claimed the bank illegally raided Social Security benefits to collect fees.
Plaintiffs in the class-action case had accused the largest U.S. bank of dipping into their Social Security direct deposit accounts between 1994 and 2003 to collect fees for overdrafts and other debts. A San Francisco trial court in 2004 ordered the Charlotte, North Carolina bank to pay $284.4 million of damages, plus up to $1,000 to each customer who suffered substantial emotional or economic harm. The case was filed on behalf of more than 1.1 million customers, many of whom were elderly or disabled. In 1974, the California Supreme Court had ruled that a bank may not satisfy a credit card debt by deducting fees owed from a separate checking account containing deposits that "derived from unemployment and disability benefits." But in Monday's unanimous ruling, the court distinguished the current case by saying the transactions at issue occurred "within a single account" rather than in multiple accounts.
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Extend or end? Minn. Senate race up to high court
Law Center |
2009/06/02 03:51
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In an hour of rapid-fire questions over Minnesota's disputed Senate election, the state's highest court focused on whether vote-counting flaws alleged by Republican Norm Coleman were severe enough to deny Democrat Al Franken the win.
Barely a minute into oral arguments, justices challenged Coleman's attorneys on the adequacy of evidence they presented in an election trial and the legality of their suggested remedy: that more ballots be counted even if some absentee voters didn't fully comply with the law.
"It's possible there are statutory violations which do not rise to the level of constitutional violation," Justice Alan Page said, alluding to a threshold appeals courts often turn to before reversing a lower-court decision. The state Supreme Court justices can confirm Franken as the victor or reopen the count as Coleman wants. Franken hopes the court orders that he immediately receive the election certificate required to take office. Franken is the potential 60th vote for Democrats in the Senate, though two of those are independents. The court's involvement is the latest but maybe not the final stop. If Coleman loses, he could file a new case in federal court or petition for review by the U.S. Supreme Court, which isn't certain to take the case. If Franken doesn't like the result, he could ask the Senate itself to weigh in. |
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